the case has damaged u.s. relations with pakistan, a key ally in the war on terror. >>> free speech was the winner at the supreme court, even if that speech is by most people's measure filled with hatred. the case involving the small right -- or the right of the small fundamentalist church to protest near the funerals of soldiers killed overseas. our supreme court correspondent and "nightline" anchor, terry moran, has the details. >> reporter: their protests are so outrageous and so cruel -- ♪ america >> reporter: that the question for many americans is simple -- how can this be legal? the supreme court answered. "speech is powerful," chief justice john roberts wrote in the court's opinion. "it can stir people to action, move them to tears of both joy and sorrow and as it did here, inflict great pain. we cannot react to that pain by punishing the speaker." the court held that because the protests deal with public issues -- gays in the military, war in iraq -- they are protected under the constitution. "we do